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<br /> <br />. <br /> <br />. <br /> <br />101 W. McCune <br />Fruita, CO 81521 <br />(303) 858.3663 <br /> <br />tlay 23, 1966 <br /> <br />tlr. David Walker <br />Colorado Wa~er Conserva~ion BO~rd <br />721 5~a~e Centennial Building <br />1313 Sherman S~ree~ <br />Denver, Colorado 60203 <br /> <br />t <br /> <br />Dear Davicl: <br /> <br />The purpo~e of ~his le~~er is to formalize our phone conversa~ion <br />of tlay 16, 1966. <br /> <br />The Ci~y of Frui~a feels ~ha~ i~ migh~ be possible for us ~o <br />re~ain ~h~ ~i~le ~o our wa~er ~ys~em and subs~i~u~e ~he following <br />as colla~~ral on our loans. <br /> <br />When no deferral of payments has been made, we would pass <br />direc~ly through all monies received from ~he U~e Wa~er Dis~ric~ <br />~o ~he C.W.C.B. The fac~ ~ha~ "Ute's" paymen~s ~o Frui~a and <br />Frui~a's payments ~o ~he Wa~er Board coincide in timing and <br />amount would no~ mean that Ute was obligated for paying Fruita's <br />debt. Effectively, this would mean that the water system revenue <br />was helping to pay the deb~. Deferred paymen~s of principal and <br />interest would be guaran~eed by a pledge of sales ~ax revenue <br />subjec~ ~o prior General Obliga~ion Bond commi~ments. <br /> <br />This would be a much be~~er security arrangement fcr the Sta~e <br />than "~i~le" to a 40 year old, in the ground, water sys~em and <br />would enable Frui~a and U~e ~o deal directly with each o~her <br />without involving ~he C,W.C.B., <br /> <br />~ <br /> <br />I would apprecia~e your response ~o this proposal as 500n as <br />possible since our truce with the Ute Board has a time limit on <br />i 1:.. <br /> <br />Thank You <br /> <br /><:1 ~#-'<- <br /> <br />Robert O. Engelke <br />City tlanager <br />